It is essential to make sure that borrowers understand each step of the Reverse Mortgage process. The steps are as follows:

STEP 1   Learn About Reverse Mortgages
There is a growing array of reverse mortgage programs available, although the FHA federally-insured program is the most popular. Jumbo loans and other proprietary programs are becoming increasingly available as well. Your Mortgage Trust loan officer can explain to you the different alternatives including the features and benefits of each program in order to determine whether or not one of these programs might meet your needs. We encourage you to discuss the reverse mortgage alternatives with family members and/or other trusted advisors.

STEP 2   Reverse Mortgage Counseling
As a safeguard that you are being given credible advice and that a reverse mortgage is right for you, you will be required to undergo reverse mortgage counseling with an independent, approved counselor. This can be done face-to-face or by telephone. Mortgage Trust believes that a Reverse Mortgage is a very personal decision, therefore, any information provided by you will be held in strict confidence and will not be shared, sold, or provided to any firm for solicitations without your express written authorization and permission.

STEP 3   Submit an Application
Your Mortgage Trust loan officer will assist you in completing and submitting an application. The application is not a binding contract but will provide the borrower with needed information about Reverse Mortgages and also the necessary documents needing to be signed for submission to the chosen lender to begin the loan approval process

STEP 4   Appraisal / Inspection
Upon completion of your application and counseling, the next step is the appraisal. Mortgage Trust will order an appraisal by a qualified licensed appraiser to determine the home’s value and also identify any repairs that need to be made in order to meet underwriting guidelines. The completed appraisal will then be sent to the loan processor to be included in the loan package that is submitted to the lender for final approval.

STEP 5   Approval
Underwriters will review the loan documentation in accordance with FHA/HUD guidelines or other private lender policies. Upon approval, a closing date and location for the closing will be scheduled. Most often, Reverse Mortgage closings take place at the borrower’s home.

STEP 6   Closing
At the closing, the final loan documents are carefully explained to the borrower(s) by an experienced representative from the title company and then signed by the borrower(s). Following the closing, if for any reason the borrower(s) are not completely satisfied, they have 3 business days to change their minds and cancel the transaction without penalty.

Mortgage Trust believes that a Reverse Mortgage is a very personal decision, therefore, any information provided by you will be held in strict confidence and will not be shared, sold, or provided to any firm for solicitations without your express written authorization and permission.